CarTrade’s entry into the stock market was weak. CarTrade Tech shares fell 8.8 per cent in intraday on August 20. Whereas during this period there was a fall of only 1 percent in the market. CarTrade shares were listed on BSE at Rs 1,600, down 1.11 per cent from the issue price. CarTrade shares also touched a low of Rs 1,476 during the day’s trading. Whereas its issue price was Rs 1618. CarTrade shares closed at Rs 1,491 on the day of listing on August 20.
Prashant Taapsee, VP (Research), Mehta Equities, told Moneycontrol, “We have advised investors to exit after profit booking on the day of listing. Those investors who were not allotted shares and wanted to invest on the day of listing, should do so. We were told to wait.”
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Prashant Taapsee is confident that the asset light business model of the multi-channel auto platform can benefit investors. CarTrade business is running in profit. “An investor with a low risk appetite can invest in CarTrade shares for the long term,” he added.
CarTrade’s issue was purely an offer for sale. Through this, the company has raised a total of Rs 2998.51 crore.
Aastha Jain, Senior Research Analyst, Hem Securities, said investors should book some part of the profit and wait for the rest for the long term.
CarTrade is the only profitable automotive digital platform. It has an asset light model and good EBIDTA margin. Gaurav Garg, Head of Research, CapitalVia Global Research said, “Investors who can hold for two-three years can benefit.”
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